Rhode Island Attorney General Settles Suit With 'Rescue' Company; Judge Orders Return of Homes, Operations Shut Down

According to a report summary appearing on the Community Choice web site, the Rhode Island Attorney General has reached a settlement in a civil lawsuit brought against a 'foreclosure assistance' company in connection with a home acquisition operation whereby it acquired homes from financially distressed homeowners under the guise of foreclosure rescue 'buy back' program.

Superior Court Judge Daniel Procaccini granted the attorney general's request for a permanent injunction prohibiting the operator or its affiliates from transferring or selling any of the 16 properties already enrolled in the buyback program. It also requires a return of ownership of two of the homes back to the original owners, and prevents the company or its affiliates from using the 'buy back' program to acquire any more properties.

According to a Rhode Island Attorney General news release issued prior to the settlement, the cases had two characteristics common with a 'foreclosure rescue' scam:

1. sparse documentation provided to consumers, and
2. unknowing conveyance of ownersip by the victim to the operator.

This story was originally reported by The Providence Journal.

Click here for the Community Choice summary

Click here for Attorney General's News Release

Click here for one of The Providence Journal's articles